MUMBAI: Touted as a dedicated authority to resolve problems faced by real estate consumers, home buyers say they are now finding it tough to get relief from Maharashtra Real Estate Regulatory Authority(MahaRERA). With around 8,000 complaints pending, besides delay in or non-execution of some of the regulator’s orders, including recovery warrants by revenue authorities, experts say it “lacks teeth and needs to do more”.
Take the case of home buyer Sumeet Mehta, who has been waiting since Jan 2024 for the execution of a MahaRERA order directing the builder to sign an agreement for sale. Mehta invested in a Goregaon project and paid up to 75% of the amount. “The authority also ordered for the collection of the penalty for failure to adhere to the order. However, the penalty too is yet to be collected,” said Mehta.
In a recent instance, MahaRERA had directed the developer to execute a registered agreement for sale with the complainant and pay interest for delayed possession. As the developer flouted the order, the adjudicating officer transferred it for execution to the district judge, Dindoshi.
Hearings in some complaints have been delayed for more than two years. MahaRERA has been struggling to dispose of cases with a limited number of members on board. “Cases come up for hearing after a year and half after a complaint is filed. Some of the complaints have been filed in 2021 and 2022 and are yet to come up for hearing. But the current MahaRERA chairman Manoj Saunik has been trying to improve disposal of cases and heard a record number of cases last Monday. The govt should increase the number of MahaRERA members and develop a system, which will enable faster disposal of complaints,” said Ramesh Prabhu, who represents home buyers at MahaRERA.
Despite the objectives of the regulator, there have been concerns regarding the execution of MahaRERA orders.
“Where there is need to recover money, after developers fail to pay interest, compensation, or refunds within the prescribed time limit, as per the orders of the regulator, MahaRERA issues recovery warrants, which are executed by revenue authorities. Across the state, warrants worth Rs 771 crore, which have been issued to recover home buyers’ money, are yet to be executed. A major part of the recovery is stuck due to inaction or lack of interest on part of revenue authorities, allege lawyers.
Arun Sheth, who is over 80 years old, is awaiting the recovery of Rs 78 lakh for which recovery warrants were issued by MahaRERA six years ago, in 2019.
Advocate Anil Dsouza said, “MahaRERA has strengthened its own reach, besides its regulatory and adjudication powers by pronouncing orders, where allottees are directed to approach civil courts for execution of agreements for sale, between builders and flat purchasers, where agreements are yet to be inked. Recently, the MREAT (Maharashtra Real Estate Appellate Tribunal) issued orders, where it sought the civil court’s judgment for imprisonment of three months for a builder who did not obey the tribunal’s orders.”
Though MahaRERA officials say their role is limited to issuing recovery warrants to recover money of home buyers, the authority, in a positive step, appointed an additional collector rank official and is appointing retired tehsildars only to pursue revenue authorities regarding execution of the warrants.
“Even execution of order, which concerns directions regarding registering an agreement for sale, or repairing a leakage or allotment of parking among other things, is a problem area,” said a lawyer practising at MahaRERA.
Unlike MahaRERA, the Consumer Protection Act, provides for a penalty in the form of minimum 1-month imprisonment and Rs 25,000 to Rs 10 lakh fine for non-compliance.
Recently, refusing to grant leniency to an engineer-builder, a district consumer commission awarded 3 years of simple imprisonment for contempt of its June 2019 order and ordered him to pay Rs 25,000 fine and Rs 15,000 to the complainant towards the litigation costs.
Source Homevior.in
